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Outcome-Based Engineering: Fixed Price Software Development, Not Hours
An outcome-based engineering company is paid for a defined deliverable, not for the hours it takes to build it. You agree a scope, a price and a date before any code is written. If the build runs over, we absorb it. Ailoitte has worked this way on every engagement since 2017: fixed price software development with milestone payments, a senior architect on every project, and the IP assigned to you on payment.
Send your scope or your backlog. Within a week you get a price per feature, a first-release date and the architect's name, with every assumption written down. If the scope cannot be fixed yet, we tell you that first.
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Overruns are ours
The price you sign is the price you pay.
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Pay on accepted milestones
Working software, not calendar weeks.
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Changes quoted first
A written amendment, never a surprise invoice.
Outcome-based software development, in six answers.
What you are buying
A defined deliverable at a fixed price and date: a deployed product, a migrated system, a shipped feature set. Not a team, not a block of hours.
How the price is fixed
A senior architect scopes the work, filters out what is not load-bearing, prices each feature, and writes down every assumption. The number arrives within a week of the scoping call and holds.
What happens if we run over
We absorb it. If a sprint takes longer than we estimated, the cost is ours. Delivery risk sits with the company doing the delivering.
How changes work
Anything outside the statement of work is quoted with its cost and date impact and approved in writing before it starts. You will never see an invoice for work you did not authorise.
When you pay
On accepted milestones. Each two-week sprint ends with working software and a sign-off gate, and payment follows acceptance, not time elapsed.
What you own
All code, architecture documents, deployment scripts and credentials, assigned to you on payment with no licence back and no retained copies.
Sunil Kumar 
Why billable hours are a conflict of interest, and what replaces them.
In a time-and-materials contract the client carries every risk: if the build takes longer, the client pays more, and the vendor earns more. That is not a character flaw in agencies, it is the incentive the contract creates. Slow is profitable. Scope that drifts is profitable. A junior engineer learning on your project is profitable. None of it is visible until the invoice.
The record shows what that produces. McKinsey and Oxford studied more than 5,400 large IT projects and found the average ran 45 percent over budget and delivered 56 percent less value than promised, with software projects carrying the highest risk of all and 17 percent overrunning by more than 200 percent (McKinsey). The Standish Group has reported for three decades that roughly two thirds of software projects run over budget or schedule, and scope creep touches more than half of all projects (Standish and PMI, via DEV).
Fixed cost software development moves that risk to us. Because the price is fixed before we start, efficiency becomes our problem rather than your invoice, and the only way we make money is to ship the agreed outcome inside the agreed number. It also forces the discipline most projects skip: a scope that is actually defined, assumptions written down, and an architect who has priced each feature rather than guessed a total. That discipline is what our AI Velocity Pods run on, and it is why the first release lands in weeks.
Holding a time-and-materials estimate?
Send it over. We will price the same scope fixed, show you the per-feature breakdown, and tell you where their estimate is fair.
How the price is built
How a fixed price is built so that it holds.
Most fixed prices fail because they were a guess with a margin on top. Ours hold because of six steps that happen before you sign, each of them visible in the proposal you receive.
Step 1
Scope filtered before it is priced
We go through your feature list and flag what is not load-bearing for the first release. Cutting it produces a smaller, accurate quote rather than a padded one.
Step 2
A price per feature, not a lump sum
Estimates arrive itemised, so you can see what each capability costs and cut or defer with full information before you sign.
Step 3
Integrations checked before quoting
Third-party APIs, EHRs, payment providers and legacy systems are confirmed for what they actually expose. Guessing here is where most fixed prices break.
Step 4
Risks priced in, not discovered later
Known unknowns go into a risk register with an allowance each. If a risk does not materialise, the allowance is not spent and not billed.
Step 5
Assumptions written into the SOW
Every assumption the price rests on is listed in the statement of work. If one proves false, that is a change request with a cost, not an argument.
Step 6
A change process you control
New requests are quoted with their cost and date impact and approved in writing before work starts. The default answer to scope creep is a decision, not a bigger invoice.
The contract
What a fixed price contract for software development should contain.
Use this on any vendor, including us. A fixed price is only as good as the document behind it, and these four sections are what make the number enforceable rather than hopeful.
Scope and acceptance
- The deliverable defined in writing before any code
- Acceptance criteria per feature and per milestone
- Named architect and engineers
- The first-release date
Price and payment
- One fixed price, itemised per feature
- Payment on accepted milestones, not calendar weeks
- Third-party costs listed separately
- No hourly rates anywhere in the document
Change and risk
- Formal change requests with cost and date impact
- Assumptions listed, with what happens if one fails
- A risk register with allowances
- Overruns inside scope absorbed by Ailoitte
Ownership and exit
- IP assigned to you on payment
- Code, documents, scripts and credentials handed over
- A defect warranty after release
- No retained access or licence back
Choosing a model
Time and materials, a conventional fixed price, or outcome-based?
Not every fixed price is outcome-based. Many agencies quote a fixed number and then earn it back through change fees and a loosely defined scope. The difference is in what the contract makes visible and who carries the risk.
| On | Time and materials | Conventional fixed price | Outcome-based (Ailoitte) |
|---|---|---|---|
| Who carries an overrun | You. More hours, more invoice. | The vendor on paper, often you in practice through padded scope and change fees. | Us. The signed price is the price, and changes are your decision. |
| What you pay for | Time spent. | A total, guessed with a margin. | An outcome, priced per feature with assumptions written down. |
| How scope changes | Quietly, inside the hours. | Through change fees that are easy to trigger. | Through a written amendment you approve first, with cost and date. |
| What you see each week | A timesheet and a status deck. | A status report. | Working software and the budget position against milestones. |
| When you pay | Monthly, for hours logged. | On dates in the calendar. | On accepted milestones. |
| Incentive | More hours, more revenue. | Protect the margin. | Ship the outcome inside the price, or absorb the cost. |
How we work
Four commitments that make a fixed price safe to sign.
A fixed price protects you only if the vendor can actually hold it. These are the habits that let us.
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01
We would rather say no than guess
If a scope cannot be defined to a first release, we do not fix a price for it. We fix a price for a two-week discovery that produces one.
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02
The architect who priced it builds it
The person who wrote the estimate owns the delivery. No handoff to a bench that never saw the assumptions.
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03
Working software is the only status report
Every two weeks you see the product, not a slide about it, with the budget position against milestones beside it.
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04
AI speed is governed, not assumed
Our pods use AI tooling inside architectural rules with agentic QA on every commit. It is how we hold a fixed price and a short date at the same time.
Fixed price software development across everything we build.
Every service below is sold as a defined outcome with a price and a date, from a first MVP to a multi-phase migration. Where the roadmap cannot be fixed, the last card is the answer.
Fixed price MVP development
One product, one platform, a working first release in 6 to 10 weeks, priced per feature so a finite runway stays finite.
Fixed price app development
Native iOS and Android, or Flutter and React Native, through app store review, with the store accounts in your name.
Web and SaaS platforms
Portals, dashboards and multi-tenant products with SSO, roles and billing, delivered against accepted milestones.
AI products and agents
RAG, agents and evaluation harnesses taken to production on a fixed price for the build, with model research time-boxed.
Legacy modernization
Migration priced per phase with a zero-downtime target for each, so the risk of a rewrite is carried one layer at a time.
Ongoing pods on a fixed monthly price
When the roadmap keeps moving, an AI Velocity Pod on a fixed monthly price replaces the fixed-scope contract.
Our process
From scoping call to accepted release, in five stages.
Delivered on Clarity, our delivery method. The price is fixed at stage three and does not move unless you change the scope.
Stage 01
Scoping call
Thirty minutes with a senior architect, under a mutual NDA, on what you need shipped and by when. Learn more.
Stage 02
Discovery, if the scope needs it
A short fixed-price discovery that turns an idea into a scope with acceptance criteria. Skipped when your requirements are already clear.
Stage 03
Proposal with a price per feature
Within a week: the itemised price, the assumptions, the risk register, the milestone schedule and the first-release date, in a statement of work.
Stage 04
Build against milestone gates
Two-week sprints, a working demo at each gate, agentic QA on every commit, and payment released on acceptance.
Stage 05
Acceptance, handover, warranty
Final acceptance against the written criteria, IP assigned, code and documents handed over, and defects fixed under warranty, not billed.
Delivered on a fixed price
View Portfolio
Products shipped for the price that was signed.
Each of these was contracted as a defined outcome, delivered against milestones and handed over with the IP assigned. See all case studies.
Client references
What clients say when the invoice matches the proposal.
Signed references, each linked to the person and the work.
Lars Tegelaars
Founder & CEO @Mana
It's fair to say that we didn't just find a development company, but we found a team and that feeling for us is a bit unique. The experience we have here is on a whole new level.
Diwash Kapil Chettri & Sulabh Raj Gurung
Co-founders @Apuphi
Dependable, reliable and fast. There will always be bugs, but what matters is how fast the team resolves them. When universities asked for a pilot, Ailoitte sorted out the features we needed in 7 or 8 hours, and the officials approved it the next day.
Priyank Mehta
Head Of Product, Apna
We brought Ailoitte in when what we had was an idea rather than a product, and they built the first version from scratch. They understood our requirements immediately and built the team we wanted, on time and on budget. Ailoitte was never a one-project supplier for us. We kept them.
Sid Rath
Product Leader, Quantiphi Inc · Boston
Ailoitte helped us ship our MVP in record time, and the launch was a success. Sunil was personally involved throughout to keep execution smooth. What impresses me most is that the team operates as an extension of our own.
Swati Sharma
Manager @ Dr. Morepen
They truly understood our vision of putting 'Health in Your Hands' and brought it to life through a beautifully designed, intuitive app. Their team was skilled and aligned with our mission every step of the way.
Jitendra Dhaka
CEO, Banksathi
We had a concept and no product. Ailoitte built it from the first MVP through to the version that found its market. We ran the engagement on a time-and-materials basis, with their engineers working inside our team rather than at arm's length. Their commitment to quality and attention to detail truly set them apart.
Ademola Babalola
Founder & CEO, OpenFactor Technology Group · Johannesburg
We came to Ailoitte with a capacity and skills problem, not an idea problem. Six of their people delivered our digital lending marketplace, the web portal and both mobile apps, to specification. I would rate them eight out of ten on project performance, and we are on our third project with them.
Syed Shakeeb
Head of Operations, Koovs.com, at the time of the engagement
I have worked in ecommerce for fourteen years and this was my first seamless experience with a technology team. They built our iOS and Android app and replaced the old one, confirming every milestone without us ever having to chase.
Dr. Prashant Bhand
Lead Product Manager, LinkOMed · United Kingdom
Ailoitte were the driving force behind the success of LinkOMed's MVP launch. Their dedication and teamwork were truly remarkable, and I was grateful to witness the seamless collaboration that overcame every challenge during development.
Pradeep Naithodu
Co-Founder & CEO, Tripeers Tech · Mangaluru
They did not simply build to the specification. Where they disagreed with our technology choices they proposed alternatives with sound reasoning, which we accepted. Commitments were kept almost every time, and where the team hit a blocker they raised it rather than working around it quietly. A great technology partner, and I would recommend them.
Nick Julian
Founder & CEO, AI Innovations Hub
Over six months they produced the site, the tools database with search and filtering, user accounts, a CMS with training for our team, SEO and analytics. What stood out was that nobody behaved like a contractor. When we hit problems they would contact third-party support services on our behalf to get things resolved.
Ajay Gopinath
CEO, Sanskritly
They executed the core requirements effectively and contributed several valuable suggestions that strengthened the overall solution. Their recommendations on architecture for our voice recognition workflows improved performance, scalability and long-term maintainability.
Manikanth Epari
Co-Founder, Reveza
Their team delivered seamless AI integration and a user-friendly experience that our clients love. We've seen a clear 25% boost in in-store engagement and loyalty.
Siddhartha Pandey
Co-Founder & CEO, SupDup
A referral brought us to Ailoitte after we had evaluated around five firms. The project started with workshops that gave them a clear view of what we wanted to achieve. Their project management and team spirit are outstanding.
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Pricing
What fixed price software development costs with us.
Our fixed prices usually run from $20,000 to $50,000 for an MVP, $50,000 to $120,000 for a production platform, and $120,000 and up for an enterprise build, with the number fixed within a week of the scoping call. An MVP ships a first release in 6 to 10 weeks; a production platform with integrations takes 3 to 5 months. Payment follows accepted milestones.
The price is itemised per feature, so you can cut or defer before signing, and it carries a risk register rather than a hidden margin: allowances for known unknowns that are not billed if the risk never materialises. Third-party costs such as cloud hosting, licences and model usage are listed separately and passed through at cost.
For a roadmap that changes every sprint, an AI Velocity Pod on a fixed monthly price from about $15,000 replaces the fixed-scope contract. Support after release runs under application maintenance.
Scope definition
A scope with acceptance criteria is priced tighter than an idea. Discovery exists to close that gap before the number is fixed.
Integrations
Each external system adds scope, and the ones we cannot inspect before quoting carry a risk allowance.
Compliance
HIPAA, SOC 2 evidence or PCI DSS controls are priced into the build, not added as change requests later.
Platforms
Web only, web plus native mobile, or a single cross-platform codebase.
AI features
The build is fixed; model research with no known end state is time-boxed and priced per box.
After release
Defects in delivered scope are fixed under warranty. New work is a new fixed price or a monthly pod.
Guides and insights
Three reads before you sign any software contract.
FAQ
Ask a delivery lead
Outcome-based engineering, answered.
What is an outcome-based engineering company?
An outcome-based engineering company contracts on a defined deliverable at a fixed price rather than billing by the hour or by team size. The client agrees a scope, a price and a date; the firm delivers it and absorbs any overrun. Ailoitte has worked this way on every engagement since 2017.
What is outcome based software development?
Outcome based software development means you buy a result, a deployed product or a shipped feature set, not the time it takes to build it. Payment follows accepted milestones, changes are quoted first, and delivery risk sits with the company doing the work.
How does fixed price software development differ from time and materials?
In time and materials you pay for hours and carry every overrun; in fixed price software development you pay an agreed amount for an agreed outcome and the vendor carries the overrun. The trade is a defined scope up front, which is a discipline most projects benefit from anyway.
Is fixed cost software development more expensive than hourly?
Usually not once overruns are counted. Hourly estimates look lower because they exclude the 45 percent average overrun large IT projects run to. A fixed cost software development price includes the risk, itemised, and the only way the vendor earns it is by shipping inside the number.
What should a fixed price contract software development agreement include?
A written scope with acceptance criteria, a price itemised per feature, a milestone payment schedule, a change-request process with cost and date impact, a list of assumptions, a risk register, a warranty period and an IP assignment clause naming your company. If any of those is missing, the fixed price is a hope rather than a commitment.
What happens if the project runs over?
We absorb it. If work inside the agreed scope takes longer than we estimated, the cost is ours and the price you signed is the price you pay. Only scope you add, approved in writing, changes the number.
How do you handle scope changes?
Through a formal change request: we quote the cost and the date impact, you approve it in writing, and only then does work start. Nothing outside the statement of work is ever billed quietly.
Do you offer fixed price app development?
Yes. Mobile apps for iOS and Android are priced per feature with the store submission included, and the App Store and Play Console accounts stay in your name. Native, Flutter and React Native builds are all quoted the same way.
How quickly do we get a fixed price?
Within a week of the scoping call, as a statement of work with the itemised price, the assumptions, the risk register and the first-release date. If the scope needs a discovery first, that discovery is itself fixed price and short.
When do we pay?
On accepted milestones. Each two-week sprint ends with working software and a sign-off gate; payment releases on acceptance, not on calendar weeks or hours logged.
When is a fixed price the wrong model?
For research with no known end state, and for roadmaps that change every week. Research is time-boxed and priced per box. A fast-moving roadmap runs better as an AI Velocity Pod on a fixed monthly price than as a fixed-scope contract that needs an amendment every sprint.
Who owns the code and the IP?
You do, on payment. Code, architecture documents, deployment scripts and credentials assign to your company with no licence back and no retained copies.
A question about your own contract?
Send it over. A delivery lead replies within 12 hours.
Get a price that holds. Then decide.
Tell us what you need shipped. A senior architect will scope it, price it per feature and give you a date, with every assumption written down. If the scope is not ready to be fixed, you will hear that on the same call.
- Mutual NDA before we see any requirements
- A senior engineer on the call, not a salesperson
- A price per feature and a first-release date within a week
- No obligation, and nothing to pay to find out
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"Ailoitte understood our requirements immediately and built the team we wanted. On time and budget. Highly recommend working with them for a fruitful collaboration."
Priyank Mehta
Head of product, Apna
Ready to turn your idea into reality?
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- USA
- EduTech
My experience working with Ailoitte was highly professional and collaborative. The team was responsive, transparent, and proactive throughout the engagement. They not only executed the core requirements effectively but also contributed several valuable suggestions that strengthened the overall solution. In particular, their recommendations on architectural enhancements for voice‑recognition workflows significantly improved performance, scalability, and long‑term maintainability. They provided data entry assistance to reduce bottlenecks during implementation.
Ajay gopinath
CEO, Sanskritly
Ready to turn your idea into reality?
×
- India
- FinTech
On paper, Banksathi had everything it took to make a profitable application. However, on the execution front, there were multiple loopholes - glitches in apps, modules not working, slow payment disbursement process, etc. Now to make the application as useful as it was on paper in a real world scenario, we had to take every user journey apart and identify the areas of concerns on a technical end.
Jitendra Dhaka
CEO, Banksathi
Ready to turn your idea into reality?
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- India
- HealthTech
“Working with Ailoitte was a game-changer for us. They truly understood our vision of putting ‘Health in Your Hands’ and brought it to life through a beautifully designed, intuitive app. From user experience to performance, everything exceeded our expectations. Their team was proactive, skilled, and aligned with our mission every step of the way.”
Saurabh Arora
Director, Dr.Morepen
Ready to turn your idea into reality?
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- India
- RetailTech
“Working with Ailoitte was a game-changer. Their team brought our vision for Reveza to life with seamless AI integration and a user-friendly experience that our clients love. We've seen a clear 25% boost in in-store engagement and loyalty. They truly understood our goals and delivered beyond expectations.”
Manikanth Epari
Co-Founder, Reveza
Ready to turn your idea into reality?
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- India
- HealthTech
“Ailoitte truly understood our vision for iPatientCare. Their team delivered a user-friendly, secure, and scalable EHR platform that improved our workflows and helped us deliver better care. We’re extremely happy with the results.”
Dr. Rahul Gupta
CMO, iPatientCare
Ready to turn your idea into reality?
×
- India
- EduTech
"Working with Ailoitte was a game-changer for us. They truly understood our vision of putting ‘Health in Your Hands’ and brought it to life through a beautifully designed, intuitive app. From user experience to performance, everything exceeded our expectations. Their team was proactive, skilled, and aligned with our mission every step of the way."
Saurabh Arora
Director, Dr. Morepen
